TNAG-0279-FCO40-315-Visit-of-Secretary-of-State-for-Foreign-and-Commonwealth-Aff-1970 — Page 25

CONFIDENTIAL

BACKGROUND

Chinese Aims

The Chinese regard Hong Kong (both the ceded and leased areas)

as Chinese territory, which will eventually return to China. They

are aware that the Colony cannot be defended for any significant

length of time against a determined Chinese attack or against local

Communist-inspired disturbances, reinforced by substantial military

In any case the Chinese have at their

intervention from China.

disposal ample means of making difficulties for the Hong Kong

Government. But for the time being the Chinese are prepared to

accept the existence of the Colony in its prosent form, since it

brings them considerable economic and political advantages.

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2. While the Chiness Government are content for reasons of self-

interest to accept the status quo, there are certain questions on

which they are particularly sensitive. They have always been quick

to react to any action by the Hong Kong Government which they

considered a threat to communist education, schools, trade unions

or press. But provided that due heed is paid to their known

susceptibilities, the Chinese are likely to acquiesce in the way

the Colony is administered.

Current Chinese Policy

3. The Chinese leadership are making increasingly firm efforts

to restore order and to reactivate the Chinese economy. At the

same time, they have shown a growing desire to put their foreign

relations on a more normal focting, and a tendency to approach

foreign policy matters in a pragmatic spirit. It is now

fairly evident that the moderate elements in the leadership

CONFIDENTIAL

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